Hi, I'm looking for some advice on my current situation and potential courses of action. In summary, myself and wife bought a house in 2006 for €240k which is now approx worth €140k were it to go up for sale. The o/s mortgage balance is approx €205k giving negative equity of €65k. We're on a tracker rate of 1.3% on the mortgage.
I've recently been given a half acre site by my parents. An estimate would be that a decent sized 4 bed house built on this site could be worth €300k. Lets assume that the build cost is around €220k.
Myself and my wife have €50k in savings currently and have a joint income of €100k per year, both PAYE workers. We have an expanding family so would be very keen to try and build our own house and move from our existing home.
My main questions are if we were to rent our existing house, could we apply for a brand new mortgage with any institution and use part of the €50k savings as a deposit towards a new build ? Our current mortgage provider is BOI. Would they advance us a new mortgage if we were to rent our existing house ? Also, if we were to sell our existing house and try and get a negative equity trade up mortgage with BOI to build a new home, what way would they approach our savings ? Would they look to clear out all our savings against the negative equity ?
Thanks for any feedback and opinions about how we could try and build on our site.
I've recently been given a half acre site by my parents. An estimate would be that a decent sized 4 bed house built on this site could be worth €300k. Lets assume that the build cost is around €220k.
Myself and my wife have €50k in savings currently and have a joint income of €100k per year, both PAYE workers. We have an expanding family so would be very keen to try and build our own house and move from our existing home.
My main questions are if we were to rent our existing house, could we apply for a brand new mortgage with any institution and use part of the €50k savings as a deposit towards a new build ? Our current mortgage provider is BOI. Would they advance us a new mortgage if we were to rent our existing house ? Also, if we were to sell our existing house and try and get a negative equity trade up mortgage with BOI to build a new home, what way would they approach our savings ? Would they look to clear out all our savings against the negative equity ?
Thanks for any feedback and opinions about how we could try and build on our site.